Will AstraZeneca continue falling, or will it recover to 6522p recent highs?

• AstraZeneca shares fell as low as -5.2% today.
• Announced a $3.5bn share placement to fund JV to develop cancer drugs
• Now trades 6266p (at time of writing).
• Shares -4.2% from 2019 highs; +17.9% from 2019 lows; +6.6% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading AstraZeneca – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 6522p. You decide to buy exposure to £10,000 worth of AstraZeneca using a CFD, at the current price of 6266p. To do this, you need £2,000.

Let’s assume AstraZeneca recovers back to 6522p recent highs (+4%). Your profit would be £400, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. AstraZeneca falls 2% and hits your stop-loss. Your loss would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.